How to file ITR4?

04/08/23 ©Taxmann/Rajesh Thakur 1

Taxmann’s

TAX PAYERS’ PRESENTATION

RETURN OF INCOME

[ITR - 4]

By

Rajesh Thakur


Form ITR - 4

INDIAN INCOME TAX RETURN

(For Individuals and HUFs having income from a proprietory

business or profession)


Guidelines for filing out parts and schedules

General All items must be filled in the manner indicated therein;

otherwise the return maybe liable to be held defective or even invalid.

If any schedule is not applicable score across as “---NA---”.

If any item is inapplicable, write “NA” against that item. Write “Nil” to denote nil figures. Except as provided in the form, for a negative figure/

figure of loss, write “-” before such figure. All figures should be rounded off to the nearest one

rupee. However, the figures for total income/ loss and tax payable be finally rounded off to the nearest multiple of ten rupees.


Guidelines for filing out parts and schedules

Sequence for filling out parts and schedules

Part A SchedulesPart B Verification Details relating to TRP and counter

signature of TRP if return is prepared by him.


Points to be noted while filing ITR-4 in paper format

No document (including TDS certificate) should be attached to this form.

Please fill acknowledgement slip and then submit the return.

The return form is not required to be filed in duplicate.


Modes of filing Income-tax returns

Mode of filing Acknowledgment slip ITR-V

Paper Form

E-filing without Digital Signature Certificate

Bar Code Return

e-filing with Digital Signature Certificate


Personal information

Write first

name

Write middle name (If no

middle name leave blank)

Write surname

Write 10 digit PAN, please ensure that first five letters of PAN are alpha and next four letters are numeric and the last one is alpha. For, e.g., – AMUPK0123N


Personal informationWrite Flat/Door/

Block No.Write Premises/

Building/ Village

Write 6 digit PIN Code

Write Road/ Street/ Post

Office

Write Area/ Locality

Write Town/ City/ District

Write State name


Personal information

Govt. category will include Central Govt./ State Governments employees

Write Date of Birth

Write Gender

Optional Optional

PSU category will include public sector companies of Central Govt. and State Govt.

Tick on applicable status if individual tick

on Individual otherwise on HUF


Filing statusWrite Ward/

Circle

15 In response to notice under section 153A

14 In response to notice under section 148

13 In response to notice under section 142(1)

12 Voluntarily after the due date

11 Voluntarily before the due date

Code Description


Filing statusIf it is not revised return tick on original.

Tick the residential status. A person is resident if he is in India in the

previous year for 182 days or more.


Audit information

There are two types of professions, one is “Specified Professions” and other is “Non-specified Professions”.


Specified profession - For the purpose of section 44AA and rule 6F legal, medical, engineering, architectural, accountancy, etc. are specified professions.

Non-specified profession - A non-specified profession is a profession other than a “specified profession”.


Audit information

Specified profession

Category A Category B

Gross receipts in the profession do not exceed Rs. l,50,000 in any of the three years immediately preceding the previous year.

Gross receipts in the profession exceed Rs. 1,50,000 in all the three years immediately preceding the previous year.

Persons coming under this category are required to maintain such “books of account and other documents” as may enable the Assessing Officer to compute their taxable income. The Board has not prescribed books of account to be maintained for persons falling under this category.

Persons coming in this category are required to maintain such books of account as are prescribed by rule 6F (specified books of account as discussed in next slide).


Audit information

Non-specified profession

Category C Category D

Business whose income from suchbusiness or profession does not exceed Rs. 1,20,000, or the total sales, turnover or gross receipts thereof are not in excess of Rs. 10,00,000 in all the three years immediately preceding the previous year.

Business whose income from such business or profession exceeds Rs. 1,20,000, or the total sales, turnover, or gross receipts thereof are in excess of Rs. 10,00,000 in any of the three years immediately preceding the previous year.

Persons coming under this category are not required to maintain any books of account.

Persons falling under this category are required to maintain such "books of account and other documents" as may enable the Assessing Officer to compute their taxable income. However, the Board has not prescribed the account books to be maintained by persons falling under this category.


Specified books of account - For persons falling under category B:a . a cash book;b. a journal (in case of mercantile system);c. a ledger;d. carbon copies of bills (whether machine numbered or, otherwise serially numbered) exceeding Rs. 25 and carbon copies or counterfoils of machine numbered or otherwise serially numbered receipts;e. original bills in respect of expenditure incurred by the person or, where such bills and receipts are not issued and the expenditure incurred does not exceed fifty rupees, payment vouchers prepared and signed by the person.


Audit information

Who has to get his accounts audited on compulsory basis-—

Different taxpayers When they are covered by the provisions of compulsory audit under section 44AB

A person carrying on business

If the total sales, turnover or gross receipt in business for the previous year(s) relevant to the assessment year exceed or exceeds Rs. 40 lakh.

A person carrying on profession

If his gross receipts in profession for the previous year(s) relevant to the assessment year exceeds Rs. 10 lakh.

A person covered under section 44AD, 44AE, 44AF, 44BB or 44BBB

If such person claims that the profits and gains from the business are lower than the profits and gains computed under these sections (irrespective of his turnover).

Note: Section 44AB is not applicable in the case of assessees who come within the purview of section 44B or 44BBA.


Nature of business

For detail list please see Instruction No. 9(ii).


Sources of fundsThe Balance Sheet as on 31st March,2007 and the profit and loss account for financial year 2006-07 in the formats provided in these parts have to be filled in respect of proprietory business or profession carried out by you during the financial year 2006-07 if you were required to maintain accounts of the business or profession during the year.


Sources of fundsLoan against which firm has furnished securities (for, e.g., mortgaged property, pledge).

Loan against which firm has not furnished any securities.

Deferred tax liability is as a result of temporary difference between accounting income and taxable income which will be payable in future years.


Application of fundsInvestments which have been purchased with the intention of holding them for more than one year.

The investments made in other firm or company with a view to promote the trade of the firm and generally categorised as long term investment.


Application of funds


Application of funds

Deferred tax asset is as a result of temporary difference between accounting income and taxable income which will be deductible in future years.


No account case

Please write these amounts as on 31-3-2007.


Credit to profit and loss account

The Balance Sheet as on 31st March,2007 and the profit and loss account for financial year 2006-07 in the formats provided in these parts have to be filled in respect of proprietory business or profession carried out by you during the financial year 2006-07 if you were required to maintain accounts of the business or profession during the year.


Credit to profit and loss accountGenerally rent is not taxable as business income. It is taxable as income from house property.

Dividend income from a domestic company is not taxable.

Commission is an income earned by rendering services.


Credit to profit and loss account

Interest on units of mutual fund is not chargeable to tax.

Agricultural income in India is not taxable. However, it is taken into consideration for calculating tax on non-agricultural income.


Debits to profit and loss account

This information will be helpful in calculating disallowance under section 43B.

Write opening stock as on 1-4-2006



This information will be helpful in calculating disallowance under section 43B.

Contribution to unapproved fund is not deductible.



Premium of life insurance policy on the life of sole proprietor and his family members is not deductible while calculating business income. However, a deduction is available up to Rs. 1 lakh is available under section 80C.


Debits to profit and loss accountThese details are relevant for ascertaining fringe benefit tax liability of an “employer”. However, individuals and Hindu undivided families are not “employers” and, consequently, fringe benefit tax liability is not applicable.



These details are relevant for ascertaining the amount of disallowance under section 43B.

Provisions for bad and doubtful debt is not a deductible expenditure for tax purposes.


Tax provisions and appropriations


No account caseWrite gross

receipts

Write gross profitWrite

expensesWrite net

profit


Other information

If the accounts of the business or profession were not required to be audited under section 44AB, it is optional to fill these parts.

Where the accounts of the business or profession were required to be audited under section 44AB, the details to be filled in these parts which are also required to be reported in the report of audit by the auditors, should broadly match with the details as given in the report of audit.


Other informationTick on method of

valuation of closing stock

If there is change in stock valuation method Tick on

Yes otherwise No


Other information

Generally referred in case of construction contract business which is increased income due to the terms agreed in a contract for increase in charges due to price increase.

Capital receipt is a receipt which is not a revenue receipt and is not taxable.


Other information

Fully deductible

Deductible if payment is made

by cheque

It is not deductible


Other informationDeductible on pro-rata basis

Deductible if loan is taken for business purposes and conditions of section 43B are satisfied

Deductible if conditions of section 40A(9) are satisfied

Deductible if it is written off in the books of account


Other information Not deductible

Deductible only in the case of a company


Other information


Other informationThis is not relevant in the case of an individual or a Hindu undivided family.

Amount paid to a relative or inter-connected concern in excess of fair market value of the goods or services supplied by the other party is not deducted under section 40A(2).


Other information

20% of such payment is not deductible under section 40A(3).

Contribution to an unapproved gratuity fund is not deductible.

It coversamount paid to relatives or inter-connected concerns


Other information

If such amount is paid during the previous year, it is deductible during the current year.


Other information

If the amount covered by section 43B is not paid till the due date of submission of return of income, it is not allowed as deduction.


Other information

Section 33AC is not applicable in the case of an individual or a Hindu undivided family.


Quantitative details

The quantitative details may be furnished only in respect of principal items.

Purchases are to be shown exclusive of taxes and the details of taxes paid on the purchases are to be indicated separately in the relevant rows. However, where it is not possible to segregate the details of the different taxes paid on the purchases, the same may be included and shown in the details of purchases.


Total income

•It can be taken from Form No. 16 given by the employer.•Alternatively it can be calculated as follows –

XXXIncome under the head “Salaries”

XXXProfessional tax [Sec. 16(iii)]

XXXEntertainment allowance deduction [Sec. 16(ii)]

NilStandard deduction [Sec. 16(i)]

Less : Deduction under section 16

XXXGross salary

XXXPerquisites

XXXAllowances

XXXSalary

Please insert information in schedule first


Total incomeTake from Schedule HP. Enter nil if it is negative

Take item A37 of Schedule BP, write Nil, if loss

Speculative transaction means a transaction in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled, otherwise than by the actual delivery or transfer of the commodity or scrips


Total incomeShort-term capital gain if securities transaction tax is paid. Take item A7 of Schedule-CG.

Any other short-term capital gain

Long-term capital gain take from Schedule CG


Total income

Income from owning and maintaining race

horses

Income from other sources not being from owning and

maintaining race horses


Total incomeTake total of items 2vii, 3vii and

4vii from Schedule CYLA

Take total of items 2vii, 3vii and 4vii from

Schedule BFLA

Take item 4 from Schedule EI

Take total of item ‘xi’from Schedule CFL


Computation of tax liability

Calculate tax on total income other than income chargeable at special rates

Resident woman Resident senior citizen Any other Slab rate

0 – 1,35,000 0 – 1,85,000 0 – 1,00,000 Nil

1,35,000 – 1,50,000 – 1,00,000 – 1,50,000 10%

1,50,000 – 2,50,000 1,85,000 – 2,50,000 1,50,000 – 2,50,000 20%

Above 2,50,000 Above 2,50,000 Above 2,50,000 30%



Surcharge is applicable only if total income exceeds Rs. 10 lakh. Rate of surcharge is 10 per cent of income-tax.

Education cess is 2 per cent of income-tax and surcharge.

Available if arrears of salary/gratuity, etc. are received

Relief in respect of income which is taxable in India as well as outside India.

Take item 4 from Schedule STTR

Double Taxation Relief – when no agreement exist



Simple interest is levied when return is furnished after due date or no return has been furnished @ 1% per month or part of the month (even part of month will be taken as full month). Interest will be calculated as – 1% per month or part of month of amount of tax [as determined on the regular assessment and assessment u/s 143(1)] – Advance tax – Tax deducted/Tax collected at source – Relief u/s 90, 90A and 91.



When interest is payable

Amount on which interest

is payable

Rate of interest

Period for which interest is payable

When assessee who is liable to pay advance tax, has failed to pay such tax

On assessed tax*

Simple interest @ 1% for every month or part of month

From April 1 of the AY to the date of determination of total income u/s 143(1) or where regular assessment is made to the date of such regular assessment

When advance tax paid but it is less than 90% of assessed tax

Assessed tax* – Advance tax

- do - - do -

*Assessed tax means tax on total income on the basis of regular assessment or assessment u/s 143(1) – Tax deducted/collected at source



Simple interest is levied when advance tax is not paid or under estimated instalments of advance tax @ 1% per month.

When interest is payable Rate of interest Period of interest

Amount on which interest is payable

If advance tax paid on or before September 15 is less than 30% of (a) – (b)

Simple interest @ 1% per month

3 months 30% (a – b) – c

If advance tax paid on or before December15 is less than 60% of (a) – (b)


3 months 60% (a – b) – d

If advance tax paid on or before March 15 is less than 100% of (a) – (b)


– 100% (a – b) – e

a. Tax on total income declared in the return.

b. Tax deducted/collected at source (double tax relief u/s 90, 90A and 91.

c. Amount of advance tax paid on or before September 15 of the financial year immediately preceding the relevant AY.

d. Amount of advance tax paid on or before December 15 of the financial year immediately preceding the relevant AY.

e. Amount of advance tax paid on or before March 15 of the financial year immediately preceding the relevant AY.


Tax paidTake from

Schedule-IT

Take from Schedules TDS 1 and TDS 2

Take from Schedule IT

Take from Schedule TCS


RefundEnter bank account number (essential in

case of refund)

Magnetic Ink Character Recognition (MICR) may be taken

from cheque leaf of the assessee


Verification

I, …………………………….son/daughter of……………………….. solemnly declare that to the best of my knowledge and belief, the information given in the return thereto is correct and complete and that the amount of total income and other particulars shown therein are truly stated and are in accordance with the provisions of the Income-tax Act, 1961, in respect of income chargeable to income-tax for the previous year relevant to the assessment year 20___, ___.

Place Date Sign here

Write your name Write your father’s name

Write place

Write date

Put signature here

Write assessment year


Write identification number of TRP, if return is prepared by TRP

Write name of TRP, if return is prepared by

TRP

If you are filing your return yourself then these columns are not to be filled up

TRP means, Tax Return Preparer who has been issued as per Tax Return Preparer Scheme, 2006, a Tax Return Preparer Certificate and a unique Identification Number to prepare return of income of Tax Payers


Salaries In case there were more than one employer during the year, please give the details of the last employer. Further, in case, there were more than one employer simultaneously during the year, please furnish the details of the employer you have got more salary. Fill the details of salary as given in TDS certificate(s) (Form 16) issued by the employer(s). However, if the income has not been computed correctly in Form No. 16, please make the correct computation and fill the same in this item. Further, in case there were more than one employer during the year, please furnish in this item the details in respect of total salaries from various employers.


Salaries Write name of employer

Write 10 digit PAN of employer, please ensure that first five letters of PAN are alpha and next four letters are numeric and the last one is alpha. For, e.g., – AMUPK0123N

Write address of employer

Write Town/ City

Write State name



Salaries House rent allowance, education allowance, conveyance allowance, travelling allowance, etc. if a few conditions are satisfied.

Fixed medical allowance, conveyance allowance/travelling allowance use for personal purposes, telephone allowance, lunch allowance, etc.


Salaries Perquisites which are taxable – rent-free/concessional accommodation, education facility, free-gas, electricity or water supply, domestic servants, interest-free loan, transfer of movable assets, use of movable assets.

Gratuity, leave encashment, retrenchment compensation, leave travel concession, compensation for voluntary retirement, etc. to the extent chargeable to tax.


House property

If there are three or less than three house properties, fill out the details for each properties in this Schedule. If there are more than two house properties, the details of remaining properties be filled in a separate sheet in the format of this Schedule. and attach this sheet with this return. The results of all the properties have to be filled in last row of this Schedule.


House property

Let out property Gross annual value

Self-occupied property

Nil

Write address

Write Town/ City

Write State name


Write name of tenant

Write 10 digit PAN of tenant

Tick if property is let out


House property

Amount is deductible if – • tenancy is bona fide;• defaulting tenant has vacated or steps have been taken to

compel him to vacate property;• defaulting tenant is not in occupational of any other property

of assessee;• assessee has taken all reasonable steps to institute legal

proceedings for recovery of unpaid rent or satisfies Assessing Officer that legal proceedings would be useless.


House property

Deduction is available only in respect of municipal taxes (not being penalty or interest) actually paid during the previous year. Not deductible if the house is self-occupied.

Available only if property is let out.


House property

If capital is borrowed for construction, reconstruction, purchase, renewal or repair of house property, interest is deductible on accrual basis. No maximum ceiling in the case of let out property. In the case of self-occupied property, amount deductible cannot exceed Rs. 1,50,000.


House propertyWrite address

Write Town/ City

Write State name


Write name of tenant

Write 10 digit PAN of tenant

Tick if property is let out


House property


House property

Deduction is available for unrealized rent in the case of a let-out property. If such a deduction has been taken in an earlier assessment year, and such unrealized rent is actually received in the assessment year in question, the unrealized rent so received is to be shown in this item.

Give back years’ extra rent received after claiming deduction @ 30% of such arrear rent received.


Income from business and profession


Income from business and professionDepreciation in respect of know-how, patents, copyrights, trade marks, licences, franchises, etc.

Depreciation in respect of buildings, machinery, plant or furniture.



Take item ‘6’ of Schedule 10A

Take item ‘d’ of Schedule 10AA

Take item ‘f’ of Schedule 10B

Take item ‘f’ of Schedule 10BA



Item C of this schedule computes the total of profit or loss from business or profession (other than speculative business and profit or loss from speculative business) (item A37 + item B41). Please note that if balance in item B41 in respect of speculative business is a loss, same shall not be set-off against profit from non-speculative business. In such situation, only the figures of item A37 be entered in item C.


Depreciation on plant and machinery


Depreciation on plant and machinery

At the rate of 20% of actual cost.

Applicable only if block is empty on the last day of previous year or written down value is zero.


Depreciation on other assets


Depreciation on other assets

In the case of building, furniture, fixtures, intangible assets, additional depreciation is not available.


Summary of depreciation on assetsAny plant or machinery (not covered by other blocks) and motor cars (other than those used in a business of running them on hire) acquired or put to use on or after April 1, 1990.

Buses, lorries and taxies used in the business of running them on hire, machinery used in semi-conductor industry, moulds used in rubber and plastic goods factories.


Summary of depreciation on assetsAeroplanes - Besides, it includes commercial vehicle which is acquired after September 30, 1998 but before April 1, 1999 and it is put to use for any period prior to April 1, 1999, life saving medical equipment.

Containers made of glass or plastic used as refills and plant and machinery which satisfy conditions of rule 5(2) and the following— a. new commercial vehicle acquired during 2001 -02 and put to use before March 31,2002 for the purpose of business or profession; and b. machinery /plant used in weaving, processing and garment sector of textile industry which is purchased under Technology Upgradation Fund Scheme during April 1,2001 and March 31, 2004 and put to use up to March 31, 2004.


Summary of depreciation on assets

Computers including computer software. Besides, it includes new commercial vehicles acquired in replacement of condemned vehicle of 15 years of age and put to use before April 1, 1999 (if acquired after September 30, 1998 but before April 1, 1999) or put to use before April 1, 2000 (if acquired during the financial year 1999-2000). It also includes books (other than annual publication) owned by a professional. It also includes gas cylinders ; plant used in field operations by mineral oil concerns; direct fire glass melting furnaces.

Energy saving devices; renewal energy devices; rollers in flour mills; sugar works and steel industry


Summary of depreciation on assets

Air pollution control equipments; water pollution control equipments; solid waste control equipments, recycling and resource recovery systems; machinery acquired and installed on or after September 1, 2002 in a water supply project or water treatment system or for the purpose of providing infrastructure facility; wooden parts used in artificial silk manufacturing machinery ; cinematograph films, bulbs of studio lights ; wooden match frames ; some plants used in mines, quarries and salt works ; and books (being annual publications) owned by assessees carrying on a profession or books (may or may not be annual publications) carrying on business in running lending libraries.


Summary of depreciation on assetsResidential buildings other than hotels and boarding houses.

Office, factory, godowns or buildings which are not mainly used for residential purpose [it covers hotels and boarding houses.

Buildings acquired on or after September 1, 2002 for installing machinery and plant forming part of water supply project or water treatment system and which is put to use for the purpose of business of providing infrastructure facilities under clause (i) of sub section (4) of section 80-IA; Temporary erections such as wooden structures.


Summary of depreciation on assetsRate of depreciation is 10% on any furniture/ fittings including electrical fittings

Rate of depreciation is 25% on intangible assets (acquired after March 31, 1998) - Know-how, patents, copyrights, trade marks, licences, franchises and any other business or commercial rights of similar nature.

Rate of depreciation is 20% on ocean-going ships, vessels ordinarily operating on inland waters including speed boats.


Deemed capital gains on sale of depreciable assets


Deduction under section 35Schedule ESR Deduction under section 35

Sl No Expenditure of the nature referred to

in section

(1)

Amount, if any, debited to profit and loss

account

(2)

Amount of deduction allowable

(3)

Amount of deduction in excess of the amount

debited to profit and loss account

(4) = (3) - (2)

i 35(1)(i)

ii 35(1)(ii)

iii 35(1)(iii)

iv 35(1)(iv)

v 35(2AA)

vi 35(2AB)

vii Total

Revenue expenditure on scientific research related to the business of taxpayer. Amount of deduction is 100% of the expenditure.

Contribution to an approved scientific research association, university, college, etc., for conducting scientific research. Amount of deduction is 125% of the amount of contribution.

Expenditure on scientific

research


Schedule ESR Deduction under section 35Sl No Expenditure of the

nature referred to in section

(1)


account

(2)


(3)



(4) = (3) - (2)

i 35(1)(i)

ii 35(1)(ii)

iii 35(1)(iii)

iv 35(1)(iv)

v 35(2AA)

vi 35(2AB)

vii Total

Deduction under section 35

Contribution to an approved university, college, etc., for conducting scientific research in social sciences. Amount of deduction is 125% of the amount of contribution.

Capital expenditure for conducting scientific research related to the business of the taxpayer. Amount of deduction is 100%. Depreciation is not available under section 32.


Schedule ESR Deduction under section 35Sl No Expenditure of the

nature referred to in section

(1)


account

(2)


(3)



(4) = (3) - (2)

i 35(1)(i)

ii 35(1)(ii)

iii 35(1)(iii)

iv 35(1)(iv)

v 35(2AA)

vi 35(2AB)

vii Total

Deduction under section 35

Contribution to an approved National laboratory or university or IIT, etc., for conducting an approved scientific research. Amount of deduction is 125% of contribution.

Deduction under section 35(2AB) is not available in the case of a taxpayer other than a company.


Capital gains

If period of holding is not more than 36 months (12 months in the case of shares, units, quoted debentures, etc.

If more than one short-term capital asset has been transferred, make the combined computation for all the assets. Similarly, make the combined computation for all the assets if more than one long-term capital asset has been transferred.


Capital gainsApplicable in the case of non-resident if securities are purchased in foreign currency.


Capital gainsSection 94(7) - It is applicable if shares/securities/units are purchased within 3 months before the “record date” and transferred within 3 months (9 months in the case of units) from the record date.

Section 94(8) - It is applicable in the case of bonus stripping.


Capital gains

Exemption is available only under sections 54B (agricultural land), 54D (compulsory acquisition of industrial land or building), 54G/54GA (transfer of an industrial undertaking from urban area to rural area/SEZ). Exemption under sections 54, 54EC, 54F is not available in the case of short-term capital gain.


Capital gains

A capital asset was purchased to get exemption under sections 54B, 54D, 54G, 54GA in an earlier year. This asset is transferred in the current year before completion of 3 years.


Capital gains

Equity shares or units of mutual fund/UTI are transferred within 12 months and securities transaction tax is applicable (i.e., transfer in a recognised stock exchange or transfer to the mutual fund).


Capital gains

Applicable in the case of non-resident if securities are purchased in foreign currency.

If period of holding is more than 36 months (12 months in the case of shares, units, quoted debentures, etc.


Capital gains

Cost of acquisition × 519 (Cost Inflation Index for financial year 2006-07)

Cost inflation index of the year in which the capital asset was first held by the

assessee.


Capital gains

Cost of improvement incurred on or after April 1, 1981 × 519 (Cost Inflation

Index for financial year 2006-07)

Cost inflation index of the year in which the improvement took place


Capital gains


Capital gains

A capital asset was purchased to get exemption under these sections in an earlier year. This asset is transferred in the current year before completion of 3 years.


Other sources

Dividend from a domestic company is not chargeable to tax.

Fixed deposit interest, saving bank account interest, post office interest, NSC interest, Indira Vikas Patra (IVP)/Kisan Vikas Patra interest, company deposit interest, etc.


Other sources

Gross income from machinery, plant or furniture let on hire and also such income from building where its letting is inseparable from the letting of the said machinery, plant or furniture, if it is not chargeable to income-tax under the head “Profits and gains of business or profession”.


Other sources

Gross winning is taxable. No deduction for expenses or losses


Current year loss adjustment

Mention only positive incomes of the current year in column 1, headwise, in the relevant rows.

Mention total current year’s loss(es), if any, from house property, business or profession and other sources (other than losses from race horses) in the space above columns 2, 3 and 4 respectively. These losses are to be set off against income under other heads in accordance with the provisions of section 71. The amount set off against the income of respective heads has to be entered into in columns 2, 3 and 4, in the relevant rows.



Mention the end-result of the above inter-head set-off(s) in column 5, headwise, in relevant rows.



House property loss cannot be set off against salary income.

Short-term capital loss can be set off only against short-term or long-term capital gains.Long-term capital

loss can be set off only against long-term capital gains.



Total of loss set off out of columns 2, 3 and 4 have to be entered into row vii.

The losses remaining for set off have to be entered in row viii.

Losses cannot be set off against winnings from lotteries, races, etc.


Brought forward loss adjustment

The amount of brought forward losses which may be set off are to be entered in column 2 in respective rows.

Mention only positive incomes of the current year (after set-off of loss in Schedule-CYLA in column 1, headwise in relevant rows.

The end result of the set off will be entered in column 5 in respective heads. The total of column 3 shall be entered in row viii which shall give the amount of gross total income.


Brought forward loss adjustmentHouse property loss can be set off only against house property income.

Short-term capital loss can be set off only against short-term or long-term capital gains.

Long-term capital loss can be set off only against long-term capital gains.


Brought forward loss adjustment

The total amount of brought forward losses set off during the year shall be entered in columns 2, 3 and 4 of row vii.


Carry forward of loss

In this Schedule, the summary of losses carried from earlier years, set off during the year and to be carried forward for set off against income of future years is to be entered.

The losses under the head “house property”, ‘profit and gains of business or profession” short term capital loss and long term capital loss, losses from other sources (other than losses from race horses) are allowed to be carried forward for 8 years. However, loss from owning and maintaining race horses can be carried forward only for 4 assessment years.


Deductions under section 10A

If there are more than one undertaking entitled for deduction under this section, please enter the details of deduction for each undertaking separately.



The amount of deduction under this section for an undertaking shall be as per item 17 of Form No.56F being the report of audit under section 10A.


Deductions under section 10AA If there are more than one undertaking entitled for deduction under this section, please enter the details of deduction for each undertaking separately.


Deductions under section 10B


The amount of deduction under this section for an undertaking shall be as per item 17 of Form No.56G being the report of audit under section 10B.


Deductions under section 10BA


The amount of deduction under this section for an undertaking shall be as per item 15 of Form No.56H being the report of audit under section 10BA.


Details of donations under section 80G In this Schedule, the

details of donation given by you which are entitled for deduction under section 80G have to be filled.


Details of donations under section 80G

Donation to National Defence Fund set up by the Central Government, Prime Minister’s National Relief Fund, Prime Minister’s Armenia Earthquake Relief Fund, Africa (Public Contributions - India) Fund, National Foundation for Communal Harmony, An approved university/ educational institution, etc.



Donation to Jawaharlal Nehru Memorial Fund, Prime Minister’s Drought Relief Fund, National Children’s Fund, Indira Gandhi Memorial Trust, Rajiv Gandhi Foundation, etc.



Where the aggregate donations referred to in Part-C and donations referred to in sub-clauses (v), (vi), (via) and (vii) of clause (a) and in clauses (b) and (c)of section 80G(2) exceeds 10% of total income (before deduction under other provisions of Chapter VI-A), the excess amount shall be ignored for purpose of computing deduction under section 80G.


Deduction under section 80-IA If there are more than one undertaking entitled for deduction under any of these sections, please enter the details of deduction in relevant schedule for each undertaking separately.


Deduction under section 80-IA

The amount of deduction for an undertaking shall be as per item 30 of Form No.10CCB being the report of audit under section 80-IA/ 80-IB/ 80-IC.



100% of the profit from the undertaking is deductible for the first 10 years commencing from “Initial assessment year”. Initial assessment year means assessment year specified by assessee at his option to be initial year, but it does not fall beyond fifteenth assessment year starting from previous year in which enterprise begins operating and maintaining infrastructure facility.



100% of the profit from the undertaking is deductible for the first 5 years commencing from “Initial assessment year”. 50% is deductible for the next 5 years.



100% of the profit from the undertaking is deductible for the first 10 years commencing from “Initial assessment year”.


Deduction under section 80-IB

If there are more than one undertaking entitled for deduction under any of these sections, please enter the details of deduction in relevant schedule for each undertaking separately.




25% of the profit is deductible for first 10 years.



100% of the profit from the undertaking is deductible for first 5 years. For next 5 years 25% is deductible.


Deduction under section 80-IB 50% of the profit is deductible for 5 years.

100% of the profit from the undertaking is deductible for the first 10 years.

100% of the profit from the undertaking is deductible for the first 7 years.


Deduction under section 80-IB 100% of the profit from the undertaking is deductible.

100% of the profit from the undertaking is deductible for first 5 years. For next 5 years 25% is deductible. 100% of the profit is

deductible for first 5 years.


Deduction under section 80-IC

If there are more than one undertaking entitled for deduction under any of these sections, please enter the details of deduction in relevant schedule for each undertaking separately.


100% of the profit from the undertaking is deductible for first 10 years.



100% of the profit from the undertaking is deductible for first 5 years. For next 5 years 25% is deductible.



100% of the profit from the undertaking is deductible for first 10 years.


Total deductions80C - Deduction in respect of LIC premium, contribution to PF, amount paid under Home Loan Account Scheme of NHB, etc.

80CCC - Deduction in respect of contribution to Pension Fund.

80CCD - Deduction in respect of contribution to Pension Scheme.


Total deductionsThe aggregate amount of deduction under sections 80C, 80CCC and 80CCD shall not, in any case exceed one lakh rupees.


Total deductions

Deduction in respect of Medical Insurance Premium maximum amount of Rs. 10,000

Deduction in respect of maintenance of a handicap dependant who is with disability, maximum amount Rs. 50,000 (Rs. 75,000 where disability is over 80%).


Total deductions

Deduction in respect of Medical Treatment, maximum amount Rs. 40,000 or Rs. 60,000

Deduction in respect of loan taken for higher education. Entire payment of interest is

deductible for maximum of 8 years


Total deductions

Deduction in respect of donations to certain funds, charitable institutions, etc. 100% or 50%

Deduction in respect of rent paid if a few conditions are satisfied.


Total deductions

Deduction in respect of contributions given

by any person to political parties.

Take item 5 of Schedule 80-IC

Take item ‘n’ from Schedule 80-IB


Total deductions

Deduction in the case of the business of collecting and processing of biodegradable waste. The amount of deduction is 100% of the profit for first 5 years.

Royalty income of authors of literary, artistic or scientific work is deductible up to a maximum of Rs. 3 lakh. The taxpayer should obtain a certificate in Form No. 10CCD from the person from whom income is received.


Total deductions

Deduction in case of a person with disability

Royalty on patents is deductible up to Rs. 3 lakh if a few conditions are satisfied.

Royalty income on patent is deductible up to a maximum of Rs. 3 lakh. The taxpayer should obtain a certificate in Form No. 10CCE from the person from whom income is received.


Rebate under section 88ESection 88E provides for rebate of securities transaction tax (STT) paid on the transactions chargeable to STT which have been entered into by the assessee in the course of business activities.


Rebate under section 88E

The rebate is restricted to the amount of income tax computed on average rate of tax on the profit arising from such transactions which is included in total income.Please note that no rebate is available in respect of STT paid on the transactions which give rise to long term/ short term capital gain. The rebate under this section be claimed as computed in Form No.10DB and Form No.10DC in accordance with rule 20AB.Take lower of item (2) and (3).


Rebate under section 88E

Income of minor child (after exemption of Rs. 1,500). Income of a spouse/son’s wife from an asset transferred directly or indirectly without consideration.


Special rate


Information regarding partnership firms

This Schedule has to be filled for each firm in which you are partner.In case you are partner in more than 5 firms, a separate sheet may be enclosed giving the details in same format.


Information regarding partnership firms

Furnish the amount of share in the profit of the firm as computed in accordance with the provisions of the Income-tax Act in case of the firm. Such share is exempt from tax in hands of the partner.

The amount of capital balance (including the capital on which you are entitled for an interest) in the firm in which you are partner.


Exempt incomeInterest income from UTI, Mutual Fund, etc.


Exempt income

Dividend from domestic companies


Exempt income

Long-term capital gain on transfer of equity shares/units of equity oriented mutual funds where securities transaction tax is applicable.


Exempt income

Net agricultural income in India.


Exempt income

Other incomes which are exempt under section 10, i.e., exempted portion of house rent allowance, gratuity, pension, transport allowance, education allowance, etc.


Other information


Tax payments

These details will be taken from the counter foil of the Challan 280.


TDS on salaryThese details can be taken from Form 16.


TDS on other income

These details can be taken from Form 16A.


TCS on income

These details can be taken from Form 27D.

How to file ITR4?

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